H.R. 2056: To instruct the Inspector General of the Federal Deposit Insurance Corporation to study the impact of insured depository institution failures, and for other purposes

H.R. 2056

To instruct the Inspector General of the Federal Deposit Insurance Corporation to study the impact of insured depository institution failures, and for other purposes

Date
July 27, 2011 (112th Congress, 1st Session)

Staff Contact
Sarah Makin

Floor Situation

On Tuesday, July 26, 2011, the House is scheduled consider H.R. 2056 under a suspension of the rules, requiring a two-thirds majority vote for passage.  The resolution was introduced by Rep. Lynn Westmoreland (R-GA) on May 31, 2011, and referred to the Committee on Financial Services.  The Committee held a mark-up on the bill on July 20, 2011 and reported the bill, as amended, by voice vote.

Bill Summary

H.R. 2056 would require the Inspector General of the Federal Deposit Insurance Corporation (FDIC) to study the impact of the failure of insured depository institutions.  Specifically, H.R. 2056 would require the study to detail:

  1. The impact of loss-sharing agreements (LSAs) on the insured depository institutions that survive and the borrowers of insured depository institutions that fail;
  2. The effect of FDIC policies and procedures regarding maturing LSAs;
  3. The methods of ensuring the orderly end of expiring LSAs to prevent any adverse impact on borrowing, the real estate industry, and the Depositors Insurance Fund;
  4. The significance of certain paper losses;
  5. The success of FDIC field examiners in implementing specified FDIC guidelines regarding workouts and commercial real estate loans;
  6. The application and impact of consent orders and cease and desist orders;
  7. The application and impact of FDIC policies; and
  8. The FDIC’s handling of potential investment from private equity companies in insured depository institutions. 

The bill would require the FDIC make available from the portion of the FDIC budget allocated to management expenses, sums allowing the FDIC Inspector General to complete this study.

Cost

At press time, the Congressional Budget Office has not produced a score for H.R. 2560.